Author: Geoff Pieroway

SIA has consistently identified the Utilities sector as a top investment area for 2024, with Constellation Energy Corp (CEG) emerging as a standout performer, delivering a year-to-date return of 128.46% and holding the #1 position in the SIA NASDAQ 100 Index Report. In a landmark partnership with Microsoft, Constellation is set to restart a unit at the Three Mile Island nuclear plant, further driving innovation in clean energy. With a bullish SMAX score of 10 out of 10, CEG continues to demonstrate strong short-term strength compared to other asset classes.

Qifu Technology (QFIN) is a Credit-Tech platform in China that has recently recovered from a multi-year slump. Currently in the Favored Zone of the SIA International ADR Report, QFIN was added to the SIA Hypothetical International 5-ADR Model after Vista Oil and Gas (VIST) moved out. This concentrated strategy selects only top relative strength names, boasting an impressive lifetime performance of +1,792% since 2012 (including 10 years of live trades and back-tested beyond, gross of fees). QFIN’s strong relative strength highlights the model’s focus on high-quality stocks, making it a valuable addition for investors looking to optimize their portfolios.

Alibaba Group Holding Limited (BABA) is a leading Chinese multinational technology company focused on e-commerce, digital media, logistics, and cloud computing. Recently, its shares have gained attention, rising 31.77% over the past month and 41.49% year-to-date, as the Chinese market experiences significant fund inflows. Currently ranked #26 in the SIA International ADR Index, Alibaba is poised for a potential breakout, with resistance at $118.64. A close above this level would confirm a new bullish phase, supported by a strong SMAX score of 10 out of 10, indicating solid short-term performance.

The Japanese Equity ETF (JAPN.TO) has risen from $37.37 to $48.44 since its purchase, achieving a 29.62% gain before fees and demonstrating strong relative strength in the SIA Hypothetical 5 CAD ETF Sector Model. This model, which selects the top five ETFs from leading sectors and is rebalanced quarterly, has delivered a remarkable 270% return since its inception in 2013, significantly outperforming the SIA CAD 60/40 Balanced benchmark.

Tencent Music Entertainment Group (TME) has emerged as a leading performer in the SIA relative strength rankings for the latter part of 2023, quickly returning to the favored zone after a brief dip. With a strong SMAX score of 8 out of 10, TME showcases solid short-term performance and excellent relative strength compared to other asset classes and peers in the SIA International ADR universe.

Alimentation Couche-Tard (ATD.TO) has recently lost relative strength and currently sits in the Unfavored zone of the SIA S&P TSX 60 Index Report, reflecting a year-to-date decline of 2.77%. Despite being in a long-term accumulation phase, the stock has shown bearish momentum with key resistance at $82.31 and support at $73.09. Advisors and portfolio managers should be cautious, as the current SMAX of only 3 indicates weak performance against other asset classes, along with its ominous move below the 50-week moving average.

Oracle has recently been added to the SIA US 5-Stock Model, highlighting its impressive performance and strong market position. This model features top relative strength names and boasts a Compound Annual Growth Rate (CAGR) of 14.55% (net of fees), significantly outperforming the S&P 500 of 8.05%. Enhance your practice with our high-performing SIA models—contact your SIA agent today; we’re always happy to assist!

BlackRock Inc. (BLK) has recently entered the favored zone of the SIA S&P 100 Index Report, rising 13 spots with an impressive 19.35% return over the past quarter. As the world’s largest asset manager, BlackRock’s strong short-term performance, reflected in its perfect SMAX score of 10, underscores the resilience of financial institutions amid ongoing market fluctuations.

GDS Holdings (GDS) is a leading Chinese data center provider that recently joined the SIA Hypothetical 5-Stock ADR Model, reflecting its strong relative performance. With a return of 1,740% compared to a benchmark of 114%, the model underscores the effectiveness of the SIA intelligence system in identifying investment opportunities, even within SIA Unfavored sectors. GDS now demonstrates significant strength, indicating potential early signs of a turnaround in Chinese equities. If you would like to explore this strategy further or understand “how we do it,” please reach out to one of your SIA Agents; we are always more than happy to assist.